RUTH Davidson has accused rival parties of failing to pledge action that would create jobs and boost the economy.

The Scots Tory leader backed comments by Liz Cameron, the chief executive of Scottish Chambers of Commerce, who said economy was "on a knife edge" and could be tipped back into recession.

Ms Davidson warned tax rises would undermine growth.

Her comments came after Ms Cameron told the BBC: "Economically, we are absolutely on a knife edge with regard to the potential of Scotland re-entering a a potential recession.

"That is an absolute wake up call that every policy that comes out of our new government and every opportunity that new devolved powers will create must be utilised sensibly and absolutely focused on how we can help business growth."

It follows a similar warning from the Scottish Retail Consortium, whose director David Lonsdale voiced concerns the SNP's £60million rates surcharge for large businesses would be maintained throughout the lifetime of the next parliament.

Responding to a report showing falling numbers of people employed in the retail sector, he also called on the next Scottish government to deliver a "reformed and more competitive business rates system".

Ms Davidson said: "All this week I have been visiting job creators across Scotland and they are telling me we need to focus on boosting jobs and growing our economy.

"If we don't, the consequences are stark.

"My opponents in this campaign are only focusing on how much extra they can take out of workers' paypackets.

"They have given us no answers at all on how we grow the economy and increase the revenue base available for schools and hospitals."

She added: "There is nothing socially just in making us the highest taxed part of the UK if all it does is damage the economy and reduce funds for our vital public services."

Ms Davidson enjoyed a more relaxed day on the campaign trail, meeting drinkers in an Edinburgh bar as Labour launched its manifesto a few miles across the city.